The concept ‘Economic stimulus Programme or package [ESP]’ came into existence and public limelight in the 2009/10 Budget speech to parliament.
The Kshs. 22 billion stimulus package tailored around labour-intensive construction projects in the 2009/2010 budget is targeted at reviving economic growth which took a downturn in 2008 following a prolonged drought, electoral violence, a rally in oil and food prices and spill over effects of the global economic crisis.
The concept ‘Economic stimulus Programme or package [ESP]’ came into existence and public limelight in the 2009/10 Budget speech to parliament. The Budget premised on the theme, ‘Overcoming Today’s Challenges for a Better Kenya Tomorrow’, aimed at urgently jumpstarting the Kenyan economy towards long-term growth and development particularly in the wake of the 2007/08 Post-election violence that brutally battered the Kenyan economy and the 2008/09 global economic recession which had astronomical negative shocks on economies, Kenya inclusive. The government allocated a total budget for the Economic stimulus programme of Kshs.22Billion.
The key objectives of the economic stimulus included, to: Boost the country’s economic recovery; Invest in long –term solutions to the challenges of food security; Expand economic opportunities in rural areas for employment creation; Improve infrastructure and the quality of education and health care for all Kenyans; Invest in the conservation of the environment; Expand access to, and build the ICT capacity of the Kenyan people; and to promote regional development for equity and social stability.
ESP Governance Structure:
The overall leadership is provided by the office of the Deputy Prime Minister and Minister of Finance. The office is further assisted by the Technical Working Group [-Chaired by PS/T and comprised of Senior Treasury Officials in the Ministry of Finance] and the ESP Secretariat [officers from the Budget supplies and Economic Affairs departments].Project Implementation Units are established at the respective Line Ministries. While down at the constituency level we’ve the Stimulus Project Management Committee [SPMC]-Established by the Constituency Development Fund Committees [CDFC], and the Constituency Projects Tender Committee [CPTC] adopted from The District Project Tender Committee.
All works and services will be sourced using existing government procurement regulations [Public Procurement and Disposal Act, 2006 and its attendant Regulations, 2006 and subsequent Amendments, 2009].The CDF Account Manager shall ensure that the constituency establishes the Constituency Project Tender Committee [CPTC]. A Tender Evaluation Committee shall also be established and membership appointed by the CDF Account Manager, whose task will be to prepare a report on the analysis of the tenders received, and final ratings assigned to each tender and submit the report to the CPTC.With exceptions of projects under the Ministry of Education, the CPTC will be responsible for adjudication and award of all the project contracts in the Economic Stimulus Programme.
ESP Reporting, Monitoring and Evaluation:
The AIE holder for every Ministry will be a member of the SPMC and will be expected to compile project reports and submit them to the Accounting Officer in their respective Ministries; the Accounting officers will in turn submit the reports to the Permanent Secretary/Treasury. The ESP Secretariat will then compile a National report at the end of the implementation period of the ESP. To ascertain transparency in the use of programme funds, as well as to ensure effective implementation of the programme, every Ministry will form Project monitoring and Evaluation committees at the national and district levels.
The Economic Stimulus Programme Handbook is available for download.